Strong Petrochemical Holdings Limited (Strong Petro) disclosed an expected trading loss of about USD10.70 million stemming from a 2026 bitumen import transaction, according to an inside information announcement made under Hong Kong Listing Rule 13.09 and Part XIVA of the Securities and Futures Ordinance.

The loss arises from a framework contract signed in November 2025 by subsidiaries Nantong Strong International Trading Company Limited and Strong Petrochemical Limited. The two units bought approximately 1.65 million barrels of bitumen for resale in Mainland China as road-asphalt feedstock.

During execution, customs authorities subjected the cargoes to prolonged inspections and applied an unexpected product classification, lifting selling costs. While the cargoes were detained, an escalation of geopolitical conflict in the Middle East drove up transportation expenses, widened crude-price spreads and dampened domestic demand, further compressing margins. After factoring in storage costs, demurrage and related hedging positions, management estimated the pre-tax loss at USD10.70 million.

The figure is based on preliminary internal assessment and has not yet been reviewed or audited. The board stated that the anticipated loss should not materially impair ongoing operations.

Management plans to finalise outstanding tasks under the contract, tighten import-compliance procedures and monitor geopolitical risks more closely to strengthen overall trading-risk management.

Trading in Strong Petro shares has been suspended since 9:00 a.m. on 31 December 2024 and will remain halted until further notice. Shareholders and potential investors are advised to exercise caution when dealing in the securities.